Corporate Finance

Netflix Shares on the Stock Market Peak Suddenly After Higher Than Expected numbers of New Subscribers.

With around an 8% increase in share value, the stocks at Netflix hit a peak of $144 last Wednesday. The stock market was reacting to the highest growth in new subscribers that the American entertainment company reported for the last quarter of 2016.

With around an 8% increase in share value, the stocks at Netflix hit a peak of $144 last Wednesday. The stock market was reacting to the highest growth in new subscribers that the American entertainment company reported for the last quarter of 2016.


The numbers are promising considering that the projections expected a moderate addition of 5.12 million accounts and an estimated earn per share of $13 cents. In reality Netflix summed more than 7.05 million new subscribers, having 1.93 million and 5.12 million new accounts in the US and internationally respectively. The actual earns per share were of $15 cents, and coming at a $2.47 billion revenue.

 

The future of Netflix – which looked less rosy in the middle of last year due to a saturation of their natural market, people from 20 to 45 in the U.S - definitely looks promising after the implementation of their global strategy focusing more on locally produced entertainment and increasing their presence in international markets.

 

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